Tower plan in jeopardy
Downtown Lighthouse project 'in a holding pattern': developer
By David Hutton, The StarPhoenix
May 22, 2009 7:18 AM
Saskatchewan's tallest building can't get off the ground.
The assisted-living component of the proposed 95-metre tall complex in the police station parking lot -- which was to break ground this summer -- is at least $10-million over budget, putting the project at that location in jeopardy.
"We're in a holding pattern," said Tony Argento, CEO of Calgary developer Stoneset Equities, which manages the project.
The proposed $80-million, 28-storey tower had Lighthouse Supported Living Inc. managing 120 units on the first six floors for people with long-term disabilities or low incomes and Stoneset developing market-rate condominium units on the 22 storeys above.
The development of the assisted living phase of the building is now estimated to cost at least $25 million -- $10 million more than originally anticipated -- with no contingency plan for further budget overruns, said Social Services Minister Donna Harpauer.
"We need to step back," Harpauer said in an interview. "In order to go that far over budget we would need to go back through the process. I believe it would have to go back to tender. We couldn't just automatically agree to that large of an increase.
"I think we're going to have to revisit . . . and work with Lighthouse to look at (different locations) or go back to tender to see if there is another builder."
The $10-million figure came as a surprise to the provincial government, which has committed $11.5 million to the project and would likely have to foot the bill for the remainder, Harpauer said. The city has committed $1.5 million to the affordable housing portion of the project.
Mayor Don Atchison said the "real, hard numbers" haven't been studied closely enough yet. The city is still anticipating the project will go ahead, he said.
"The city is ready at its end," he said. "We'll have to wait and see exactly what comes from this. . . . This hasn't been moving along at any great pace already. With the economic conditions we've had financially throughout the world, it's just going to take maybe a little longer, I don't know. It's up to the province and the Lighthouse people to deal with their issue first.
"If the other parties have a deal, great. If they don't, well, I guess we'll have to go back to the drawing board."
Due to the high cost, the Social Services Ministry will spend the next two months investigating less-costly alternatives for building an assisted-living project before making a decision whether to pull out of the Stoneset development.
"Obviously, this delays (the project)," Harpauer said. "We have to look at options that are more economical than this proposal. The cost causes one to hesitate. It is very high compared to other (affordable housing projects) we're involved in."
Stoneset Equities has already invested $300,000 in developing concept plans but it's unclear if it would continue the tower in the proposed location without Lighthouse on board, Argento said.
"Without knowing what's going to happen below us we can't move forward," he said.
"If the Lighthouse doesn't buy in, the project is completely different. We would have to redesign the whole thing. . . . There's no point in finding financing for something that might change."
[email protected]
© Copyright (c) The StarPhoenix
Prev
. Most of the Bingo halls seemed to be killed off by the smoking ban. I believe both Bingo halls you mentioned were actually one in the same; the Lucky Horseshoe downsized and rented the Adilman building before shutting down (I think they're caput now anyways?).
Here we go again. We are promised something bold, and in the end are delivered mediocrity. God, why does every project here take the same pattern? Sometimes its government (as in Station 20, the college Drive overpass) and sometimes developers (virtually every privately developed building in the city), but no one (with a few exceptions like Meridian and the U of S) seems able to follow through on their promises. I only hope that River Landing doesn't end up looking like the Remai proposal in the end. <insert black cloud here>
). Have fun.
Linear Mode
